After a 3% drop in the US dollar last week, the opening of this week remains weak, mainly influenced by the following factors:

The US job market shows signs of weakness: Non farm employment added 151000 in February, lower than market expectations of 160000, with the previous value lowered to 125000.

The increase in unemployment rate and the decrease in labor force participation rate indicate that the job market may further slow down.

Analysts from Citibank pointed out that the weak job market combined with slowing consumption, government layoffs, and stock market declines may prompt the Federal Reserve to cut interest rates in May.

Expectations of a Federal Reserve interest rate cut are heating up: Traders are currently betting on a 75 basis point rate cut by the Fed this year, and the probability of a June rate cut has been fully digested.

Powell stated last week that it remains to be seen whether the US government's tariff policy will exacerbate inflation, implying that the Federal Reserve may adopt a more cautious monetary policy adjustment.

Global trade tensions intensify: US President Trump's increased uncertainty over trade policies in Mexico, Canada, and Asian countries has raised concerns among investors about global economic growth prospects.

Market analyst Tony Sycamore said, "The combined effect of the weakening US dollar and rising risk aversion has led investors to flock to the Japanese yen and Swiss franc. Market volatility is still likely to intensify this week

In addition, Trump did not make a clear prediction about the possibility of an economic recession during an interview, further raising concerns in the market about the outlook for the US economy.

Edit viewpoint

Affected by the weak US economy and trade policy uncertainty, the US dollar continues to be under pressure. If the expectation of the Federal Reserve's interest rate cuts further heats up, the possibility of the US dollar accelerating its decline cannot be ruled out.